The burden of student loans. The need to tend to basic needs such as housing and transports. Yet, the occasional splurge and weekend vibes are also important. The financial struggle is sure real for students. It’s no surprise financial tips for students have become one of the FAQs on Finance.
While some have to depend on loans or other financial aid, others are at the mercy of occasional handouts from parents. Some don’t even have any means of support and have to go through it all alone.
To make financial life easier for college students, we have put together these 5 effective tips to help. Not only to make smart financial decisions during your college life but also set you up for financial success in later years.
Avoid impulse purchase
Those impulse purchases might seem like a good deal now, but it might end up biting you later. It can be something as small as grabbing a candy bar. Throwing a pizza party in the hostel or getting a bathtub that comes with a huge discount you find hard to ignore.
Wait and consider if what you desire is worth buying before making a purchase. Do yourself and your wallet a favour, don’t fall for the temporary excitement of impulse buying.
Set a budget
Budgeting is very crucial when it comes to managing your finances. You need to know how much is coming in as earning and how much is going out as expenses.
Creating a budget will help you realise where you need to cut down expenses. While ensuring priorities such as housing, transportation, tuition and many others are covered.
Have a side hustles
It may be quite hard to squeeze in some part time jobs while you have a lot to do in college. But there are still some side hustles that can help you generate extra income and pay off expenses.
From dog walking to babysitting to starting a blog or earning through acquired skills, your options are limitless
Face debt head-on
If you have credit cards or student loans, pay it off as quickly as possible. For this, you need to have a payoff plan to face these debts and get them cleared. The good news is there are government programs that can help with the fast payment of student loans.
For credit cards, your best bet is to avoid it altogether or pay off as fast as you can to avoid bad credits.
Invest while you are in college
Investment is a great way to save for the future and it’s never too early to start. The good thing is it doesn’t require a huge upfront investment or much effort.
You can consider a high-interest savings account, mutual funds or any other investment depending on your risk and time horizon.
Although, as a college student you might have a lot on your plate. However, you can still cultivate good financial skills that will help achieve both short and long-term goals.